There’s a long list of marketing strategies digital agencies can offer. Regardless of industry, niche, or market, email marketing is a consistent top performer.
Many messaging tools have come and gone over the years. Social media has also experienced a meteoric rise. Despite these new and flashy platforms, good ol’ email remains strong in 2021. According to tech market research firm, Radicati Group, email users will balloon to 4.1 billion by the end of the year. Whatever industry or niche your client may be operating within, email remains a good way for them to connect to their market.
The sheer number of email users is only one benefit to offering email marketing services. It’s not a ‘one-and-done’ offer. Email marketing represents a great opportunity to up-sell your services. We have all been reading and sending email for years. Any email marketing service will provide value to your clients for the foreseeable future.
Email marketing offers your clients a time-tested strategy while providing you with a regular source of revenue. When done well, it’s a win-win for you and your client. But how much do you charge for email marketing? How can you make sure it’s a good value both for your agency and your clients?
A Delicate Balancing Act
Offering email marketing will make your services more robust. Yet you must factor in pricing. Charge too little, and you’ll be flooded with work. You could end up on the short end knowing how much work you need to do to create a quality email marketing campaign. Charge too much, and your clients may balk.
So, what should digital marketing agencies do to balance strategy and budget. be able to offer a beneficial strategy to clients without them going over budget?
Things to Consider When Pricing Your Email Marketing Services
Pricing your email marketing services is not as straightforward as it looks. Different agencies take into account different factors when coming up with their prices. There is no one price that fits all.
When deciding on your own pricing, here are some factors to consider:
1. Industry Averages
Email marketing providers charge anywhere between $80 to $250 a month for services. These prices depend on the tools they use, the size of the email list, and extra costs, such as copywriting.
While costs may seem steep for some, research shows that email marketing yields high ROI. Companies earn around $35 per dollar they spend on an email marketing campaign.
2. Your Level of Experience
How much experience does your agency have running a successful email marketing campaign? How many years have you provided this service? It may be hard to charge clients a premium for email strategy if you don’t have a track record.
The more email marketing experience you have, the higher you can price your services. You can qualify your rates by showing prospective clients case studies of successful past campaigns.
Earning certifications from noteworthy institutions and getting your digital marketing agency listed as an accredited partner of popular email service providers can also help bolster the level of experience you have creating and implementing high-converting email marketing campaigns. These will not only help you win more clients but also justify your premium rates.
3. Scope of Work You’ll Provide
There are many components to email marketing, which makes it highly flexible. You can price your services depending on how much work your client requires. You can offer pre-packaged services for clients who only need help getting started, or a complete package where you create, send and track the entire email marketing campaign.
You can create tiered packages. Provide different features at different price points. Show your clients what they can expect depending on the package they choose.
You can also keep the scope of work flexible. Allow your clients to select services such as buying email credits. This self-selected limit can keep their budget in line. where they can limit the number of emails sent for a particular campaign. This level of flexibility adds a self-serve element giving them the freedom to opt out at any time.
4. Pricing Model Your Digital Marketing Agency is Using
How do you invoice your clients for services rendered? Do you charge them by the hour? Do you adopt an upfront or a 50% down payment pricing structure? Compare your pricing model to digital agencies who include email marketing as a service. Adjust accordingly.
As much as possible, keep invoicing and billing clear for you and your client. People like clarity. If you make this new service smooth and seamless, they are more likely to agree to email marketing.
For agencies that charge by the hour, billing can be as straightforward as explaining how many hours they will add to your invoice. If you’re operating on a value-based pricing model, you can discuss what metrics to keep an eye on. The same goes for performance-based pricing.
Pricing is unique to every agency. Deciding how much to charge is an individual decision. Do your homework, and you won’t go wrong.
5. The Tools You’ll Be Using
Aside from the strategies you’re going to put in place, the tools you’re going to use should also factor into your pricing. The SaaS platforms you’re going to use in sending will come at a cost, usually increasing depending on the size of the email list.
If you don’t want to worry about ballooning expenses for tools, sign up for an account with Campaign Monitor. You can send an unlimited number of emails per month for as low as $29.
Depending on the client, you may also need to get an email hosting provider when carrying out an email marketing campaign. Using a secure email hosting provider is crucial to list health. You don’t want to open up your client’s valuable email list to spam and other malicious senders.
A guarantee that their list is safe and that their subscribers will never be spammed can work in your favor. Present it as a bonus and make it part of your new add-on service.
6. Human Resources
For your clients to get a return on their email marketing investment, you need to make sure the right person creates and analyzes the campaign. Having experts in email marketing, email copywriting, email design, and data science on your team should also factor into your pricing.
Client buy-in won’t be an issue when you have experts working on their campaigns. A crack team using cutting-edge technologies will also give them a competitive advantage.
7. Operational Expenses
Offering email marketing services will increase your agency’s workload, no doubt. from account managing to the cost to run your digital marketing agency. You need to take this into account when figuring out how much to charge for email marketing services.
You’ll also need to update your marketing to reflect your new email marketing services. This means updating your agency website.
Email marketing remains a solid strategy when it comes to digital marketing. With its high ROI, agencies and their clients will reap the rewards from successful email campaign.
To make sure you don’t feel shortchanged when offering this service, and your clients remain within budget, start with industry averages when deciding on pricing. From there, you can adjust depending on scope and how you price other services. Don’t forget to consider your cost of operations, human resources, tools, and the level of expertise you and your team provide.
When done right, and priced right, email marketing just might become your most valuable service offering.
The post Email Marketing Pricing: How Much Should Digital Agencies Charge? appeared first on Campaign Monitor.
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